151 .     Termination of strata management contract

(1) There are proper grounds for termination of a strata management contract by a strata company if —

            (a)         the strata manager has contravened this Act; or

            (b)         the strata manager has contravened the contract; or

            (c)         the strata manager is, according to the Interpretation Act 1984 section 13D, a bankrupt or a person whose affairs are under insolvency laws; or

            (d)         the strata manager is a Chapter 5 body corporate within the meaning given in the Corporations Act 2001 (Commonwealth) section 9; or

            (e)         the strata manager, or a director or chief executive officer of the strata manager, is convicted in this State of an offence punishable by imprisonment for 12 months or longer and the strata company is satisfied that the offence affects the strata manager’s suitability to perform the strata manager’s functions; or

            (f)         the strata manager, or a director or chief executive officer of the strata manager, is convicted outside this State, in Australia or elsewhere, of an offence that, if it had been committed in this State, would be punishable by imprisonment for 12 months or longer and the strata company is satisfied that the offence affects the strata manager’s suitability to perform the strata manager’s functions.

(2) If a strata company is satisfied that there are proper grounds for termination of a strata management contract, the strata company may terminate the contract by giving the strata manager written notice of termination —

            (a)         specifying the date (being not less than 28 days after the date of the notice) on which the termination will take effect; and

            (b)         informing the strata manager of the right to apply to the Tribunal for review of the decision to terminate the contract.

(3) Before a strata company terminates a strata management contract under subsection (2), the strata company must give the strata manager a notice (a show cause notice ).

(4) A show cause notice must —

            (a)         be in writing; and

            (b)         state that the strata company proposes to terminate the strata management contract; and

            (c)         specify the grounds on which it is proposed to terminate the strata management contract; and

            (d)         set out particulars of the facts relied on as evidence of those grounds; and

            (e)         invite the strata manager to make written submissions to the strata company as to why the strata management contract should not be terminated; and

            (f)         specify the period (being at least 14 days after the date of the notice) within which the written submissions must be received by the strata company.

(5) A strata company must give proper consideration to any written submissions made by the strata manager within the period specified in the show cause notice.

(6) Nothing in this section affects the operation of section 115 in relation to a strata management contract or any other right that the strata company may have to terminate the contract.

[Section 151 inserted: No. 30 of 2018 s. 83.]